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Chapter 1090 Low-Tech Growth

.The disease of the cannon disease is severe in the southeast, and the group's investigation lasted for half a month. It was just back to January 2nd year.

The winter on the southeast coast is actually relatively cold. The coldness in this place is not much the same as in the north. The wet and cold can cause frostbite.

If Fan Wubing doesn't feel that he can't get through the winter in Beijing, then he feels a little unbearable here, especially since there is no heating infrastructure here, and he relies entirely on electric stoves and air conditioners to keep warm, which can easily dry the air and eventually make people angry.

But if you don't do this, you really can't stand such weather.

At the beginning of the year, the American retail giant Walmart decided to move its Asian purchasing center from Hong Kong to Luohu District, Shenzhen. The president of China told reporters that they found the biggest seller.

Among the world's top 500 companies announced by Fortune not long ago, Walmart ranked first with operating income of nearly 220 billion US dollars, which is also the first time in history that service companies have become the leader of the world's top 500. Walmart's total purchase of goods in China this year was US$12 billion, which is equivalent to the total trade between China and Russia.

According to calculations by the New York Times columnist, if Walmart is a country, it will become China's sixth largest commodity exporter and the eighth largest trading partner.

The "Made in China" wave that began around 1998 has become very vibrant this year. Chinese products at the price of monsters finally became popular all over the world, and Chinese products were in the limelight. For example, in order to face the Korean and Japanese World Cup, a toy factory in Yangzhou, Jiangsu made 300,000 World Cup mascots, a clothing company in Yiwu, Xijiang produced more than 2 million fan shouting flags and hundreds of thousands of fan fakes, and a factory in Fujian provided millions of fan clothes, wrist guards and football socks.

The National Bureau of Statistics of China declared at a press conference that China's economy's comparative advantage lies in manufacturing. Economic growth in the past twenty years has mainly relied on the growth of manufacturing, and the proportion of added value of manufacturing to GDP has basically remained at about 40%.

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According to preliminary estimates, the output of hundreds of domestically produced products ranks in the world.

Since the year eleven years ago, mainland China has absorbed more than US$230 billion in investment, accounting for nearly half of Asia's total. Among them, manufacturing is the most important investment field. China has become the fourth largest producer in the world, and Chinese manufacturing is rising worldwide.

In terms of regional structure, China has formed three world-class manufacturing centers, namely the Bohai Bay, the Yangtze River Delta and the Pearl River Delta. The total population of the three regions accounts for more than one-third of the country's total population, and its land area is less than one-tenth of the country, but it has created 57% of the GDP and 66% of the total industrial output value, and in foreign trade, it accounts for more than 85% of the country's share. The utilization of foreign capital is also close to the eight national use of foreign capital.

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Among the export enterprise groups, small enterprises have an absolute advantage in quantity, while large enterprises and large enterprises are almost the same in terms of output value.

Although large state-owned enterprises can better reflect the advantages of large-scale manufacturing production in manufacturing, there is limited room for growth. Among small enterprises, emerging private manufacturing enterprises represent new forces in manufacturing, and have developed rapidly in recent years. They are the main driving force for the rise of China's manufacturing industry and the main driving force for future development.

It was also from this year that a real joke began to spread in various versions: many people travel abroad to buy a lot of souvenirs and fashionable goods. After returning home, they opened the trademark and saw that behind this funny joke, there was a special pride in Zen.

Made in China is a new noun that suddenly emerged this year, or it is an old term, but it was suddenly activated this year and given new ideas.

Under the premise of a sluggish world economic development, China's economy is thriving, and due to various reasons such as global economic integration and comparative advantages, the world has increasingly felt China's existence and power.

Just as the rise and fall of a great power is the rise and fall of manufacturing, from the former Empire of Great Britain, the only major power in the world today, from Germany that provoked two world wars to Japan that created the miracle of East Asia, without exception. Even the four little dragons in East Asia later took manufacturing as a pioneer in the development of manufacturing.

Now, the wave of world economic integration has brought the opportunity to China's door to profit and creation.

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Although such comments are powerful, they only observed half of the facts. In fact, in the eyes of discerning people like Fan Wubing, encouragement has a relatively large effect, but the deep understanding of Chinese public and public opinion on China's manufacturing remains to be done.

In fact, from the very beginning, all the advantages of Chinese manufacturing lies in its low price.

Take an example to see the essence of China's manufacturing. Guangdong Galanz is the world's largest professional factory for producing microwave ovens, with its factory area extending for three kilometers. By this year, Liyishi's output exceeded 12 million units, accounting for the market share of the warehouse. "According to Galanz insiders, their only secret is to maximize the advantages of low labor.

The important upstream component of microwave ovens is transformers. The price of Japanese products is more than 20 US dollars, while that of European and American companies is more than 30 US dollars. In the face of the impact of Japanese goods, European and American companies are in great pain.

Seeing this situation, Galanz negotiated with American companies to make machines and give them eight dollars according to the current production of the US side. The Americans felt very good and could get eight dollars in vain without doing it themselves. Where can I find such a good thing? So they happily moved the production line.

Since Galanz employees are very low and workers can travel 24 hours and three shifts, in a week, only one to two days are actually produced for Americans, and the rest of the time is almost free dinner, so Galanz swept the domestic market.

Internationally, its low-price strategy quickly forced the transformer into a useless rib for the Japanese.

So Galanz went to negotiate with the Japanese again, saying that each unit would give them five dollars and let the Japanese rent the production line to them.

In this way, production lines from many countries gathered in Shunde, and Galanz thus established its leading position in the world of microwave oven factories.

If Galanz's story vividly illustrates the source of China's advantage in cost, then the story of Bobi doll can show the status of Chinese goods in the value chain.

Barbie dolls are the hottest children's brand toys sold by Sny Company. They are sold in 120 countries around the world every year. Its main manufacturing base is in China.

A Barbie doll with a retail price of $20 in the North American market, and the FOB price of a Chinese factory is only one dollar, which includes the costs, profits and various taxes of manufacturers and channel dealers.

China's dual engines in the two major markets of foreign trade and domestic demand have enabled the macro economy to show a prosperous scene that has not been seen for many years. The haze of the Asian financial crisis has dissipated, and the theory of China's industrial collapse after joining... has been self-defeating. Even people who have always been unpopular with the Chinese economy have to change their views.

When visiting China, Japan's former master Hashimoto said to CCTV reporters, "To be honest, I envy you very much. Japan has been unable to solve the economic problem of inflation, but China's economy has been able to maintain more than 8% growth in a few years. I am not only envious, but also envy."

During the year, 30,000 foreign-invested enterprises settled in China, attracting more than 50 billion US dollars of foreign investment. The growth rate of domestic private investment in the whole year reached 18%, twice the increase of the previous year. In provinces such as Xijiang and Guangdong, private investment accounts for more than 60% of the total social investment in the province, and foreign trade exports increase by more than 20%.

According to statistics from the World Bank, China's per capita GDP has approached 1,000 US dollars. In the past seven years, the United States has contributed only 20% of the global growth, while China's proportion is 25%.

There has been some smugness in China because of this, and it seems that it will take a few more years to pass the United States.

In this regard, Fan Wubing said in his New Year's greetings to Fan's Investment Group that low-tech growth may develop rapidly in a short period of time. In particular, there will be an explosive breakthrough in the total volume of manufacturing, but there will be many problems that come with it. You should know that most private enterprises in China have not yet provided workers with protection such as three insurances and one fund, and their salary is far lower than the local level. It can be said that this is a way to kill three hundred enemies and lose one thousand on their own.

In the long run, China will not be able to exhibit real high-tech enterprises, but can only become cheap manufacturing plants in the international market. Once the international situation changes and the economic order fluctuates greatly, the most important thing is the processing of cheap goods that rely entirely on the survival of the international market.

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At the same time, Fan Wubing also pointed out some problems in China, such as the lack of scientific and technological innovation with independent intellectual property rights, the lack of precision processing and manufacturing industries that can truly be regarded as international advanced level, the lack of application of new materials and new technologies, and the lack of a mature system to cultivate technical talents in the new era, etc.

In short, Fan Wubing poured a large plate of cold water on the ground, which made everyone very unhappy.
Chapter completed!
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